Volkswagen Passat Forum banner

1 - 13 of 13 Posts

·
Registered
Joined
·
6,274 Posts
Discussion Starter #1
Okay, so I'm a little late here...see if this applies to you:

The 365 Stupidest Things Ever Said(tm) Calendar said:
On Gotta Love That IRS:

Bribes and kickbacks to governmental officials are deductible unless the individual has been convicted of making the bribe or has entered a plea of not guilty or nolo contendere.

item in the IRS official taxpayers' guide
:crazy:
 

·
Registered
Joined
·
244 Posts
Can you say, "trap"? Something tells me that anyone stupid enough to fall for this by deducting a bribe or kickback should expect a visit from the feds very soon. Once convicted, I suspect the deduction can be retroactively disallowed, so they lose on both counts.
 

·
Registered
Joined
·
1,948 Posts
THeres another one in there somewhere about claiming "Moneys earned in illegal transactions, such as embezzlement, drug trafficing, or unlicensed weapons resale"
 

·
Registered
Joined
·
2,818 Posts
Could you apply that deduction to your future taxes in the case say, where you got audited and needed to set aside the bribe money? Could make the audit go easier... :lol:
 

·
Super Moderator
Joined
·
14,046 Posts
invariant said:
Can you say, "trap"? Something tells me that anyone stupid enough to fall for this by deducting a bribe or kickback should expect a visit from the feds very soon.
Believe it or not the IRS will not report it. I had a Tax Accounting professor that worked for the IRS for abotu 15 years. She'd see all kinds of illegal professions filing tax returns on their illegal income. Especially "escorts." The IRS just says thank you and presses on. They only care if you don't pay on your income.
 

·
Registered
Joined
·
38 Posts
AJChenMPH said:
Okay, so I'm a little late here...see if this applies to you:

The 365 Stupidest Things Ever Said(tm) Calendar said:
On Gotta Love That IRS:

Bribes and kickbacks to governmental officials are deductible unless the individual has been convicted of making the bribe or has entered a plea of not guilty or nolo contendere.

item in the IRS official taxpayers' guide
:crazy:
Not exactly true, but close. From the U.S. Master Tax Guide Sect. 972:

"Any illegal bribe or kickback paid directly or indirectly to a domestic officical or employee is nondeductible. Bribes and kickbacks paid directly or indirectly to an employee or official of a foreign governement are nondeductible if they are unlawful under the federal Foreign Corrupt Practices Act of 1977. No deduction is allowed for any payment made directly or indirectly to any person if the payment is a bribe, kickback, or other illegal payment under any U.S. law or under any generally enforced state law that subjects the payor to a criminal penalty or to the loss of license or privelege to engage in a trade or business..."

I guess all you have to do is find a legal bribe or kickback. :D Good luck!
 

·
Super Moderator
Joined
·
14,046 Posts
Sure enough....just found the same thing in my Tax Accounting text book for 1997. (Knew I should have researched it :mad: )
 

·
Registered
Joined
·
38 Posts
Urlik said:
Sure enough....just found the same thing in my Tax Accounting text book for 1997. (Knew I should have researched it :mad: )
I don't think you were necessarily wrong in what you said. As far as I know, at least publicly, the IRS has ever said that they share information with other agencies, although I'm sure John Ashcroft would like to change that... but that's a discussion for another thread. Also, you are correct in that the IRS will always take your money no matter how you earned it.

Things are pretty quiet around the office the day after tax day. Guess I should go home while I at lease have half a brain left. :)
 
1 - 13 of 13 Posts
Top